- Majority immigrant-centric neobank raises $ 19 million.
Majority, based in Houston and Stockholm, has raised $ 19 million as part of its seed funding round led by Valar Ventures with participation from Avid Ventures, Heartcore Capital and several Nordic fintech founders, TechCrunch. reports.
plans to use the new cash injection to develop its product offering and expand its team, with a particular focus on hiring talent from the immigrant communities that Majority serves, said Majority CEO Magnus Larsson, according to TechCrunch.
Majority offers a subscription-based mobile banking service where it charges customers $ 5 per month in exchange for an FDIC insured bank account, debit card, free early direct deposit, credit mobile and international paid phone calls. It also provides a community on its app which helps people who have moved to the United States to know their surroundings and connect with familiar people.
Digital banking joins a slew of
aimed at carving out a niche in the crowded US banking industry by targeting specific demographics. This has taken many forms, including tailored services for:
- Young consumers (for example, Stage and Green light)
- Specific racial and ethnic demographics (such as FortÃº targeting Latino consumers and First Boulevard targeting black consumers)
- Clients with specific professions (as KeyBank does with its digital bank for medical staff)
This specialization gives neobanks a chance to take off without having to compete directly with more established neobanks.
By broadly targeting migrant communities, Majority could make rapid inroads with unbanked and underbanked consumers. New migrants to the United States may need a bank account to join the American banking environment. Offer accounts with extras services suitable for recent migrants, such as good rates on international phone calls and money transfers, as well as advice in their native language, could make Majority a natural and easy choice for migrants of many races and ethnicities.
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